A new robo-401(k) that targets small-business owners hit the market in February. SaveDay is a “digitally advised and guided” platform that aims to offer low-cost 401(k) plans to small businesses, according to CEO Ayman Abukhater.
“We tried to reduce the complexity of onboarding the employer, of onboarding the employee, creating a simple interface for them to plan their retirement and target how much they need, and from there make recommendations for them to decide how much to contribute,” Abukhater told ThinkAdvisor on Tuesday.
The platform will officially launch Saturday, Abukhater said.
There are no fees per employee or setup fees for the employer, and participant fees are expected to be around 0.45%.
“We center the investment option on managed accounts that are run by an independent fiduciary that provides personalized portfolios based on low-cost ETFs” from firms including Charles Schwab, BlackRock and Vanguard, Aidan Yeaw, vice president of product, said on Tuesday.
While the platform is driven by its digital offering, participants will be able to contact financial professionals through a chat feature, by email or by phone, Yeaw said.
“Because we’ve built this as a technology platform, we’ve led with a rich user interface built around a digital-first, and especially a mobile-first, user experience,” he added.